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The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for $4.00 a box. The lettuce is sold for $10.00 a box and the dealer that sells old lettuce is willing to pay $1.50 a box. Past history says that tomorrow's demand for lettuce averages 250 boxes with a standard deviation of 34 boxes. How many boxes of lettuce should the supermarket purchase tomorrow?
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
Illustrate what will the average total cost be after 1 unit is produced. Elucidate what impact does the dollar appreciation have on the firm's international competitiveness.
How many workers should the firm hire if the price of the output is $10? Suppose the price of the output falls to $7.50. Illustrate what do you think would be the short-run impact on the firmâ??s production.
Elucidate why does a starbucks coffeehouse face a downward sloping demand curve, while a wheat farmer faces a horizontal demand curve.
Explain the difference between a person's nominal income and their real income. Why is real income more important to that person.
Explain how much does the customer pay. Explain how much does the government receive as tax revenue.
An increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
What are the most important things to consider when making a pricing decision for a good whose demand as well as is elastic.
Compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.
A firm that finds it extremely expensive to monitor the output of each worker will likely pay its workers
Elucidate how should Microsoft market long distance telephone services in the new wireless telecommunications devices which also include Internet portals.
Discussion on game theory concept, basic application for planning also how game theory is used to model behavior; types of games and how they are played.
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